ABS researchers published in ‘The Accounting Review’
A study carried out by Amsterdam Business School researchers Frank Verbeeten and Peter Kroos (both from the ABS Accounting section) and Mario Schabus (former ABS Accounting section PhD student) of the University of Melbourne on the role of clawbacks and CFO performance was recently published in the prestigious journal ‘The Accounting Review’.
The study 'Voluntary Clawback Adoption and the Use of Financial Measures in CFO Bonus Plans' examined the effect of clawbacks on reporting by CFOs. A clawback is a measure that allows companies to claw back compensation that managers received on the basis of misstated financial reporting. The study found that ‘for CFOs, adoption of clawbacks meant a stronger link between firm performance and their pay. Companies with clawback rules generally seek to protect accounting integrity while maintaining, and even enhancing, the advantages of performance-based CFO pay’.
The study was published in the May/June issue of The Accounting Review, a peer-reviewed journal published six times yearly by the American Accounting Association, a worldwide organisation devoted to excellence in accounting education, research, and practice. An abstract of the study can found on the American Accounting Association’s website.